Trial and Error in Japan

Updated Nov. 6, 1998 12:01 a.m. ET

Monday's statement by Barton Biggs, global strategist for Morgan Stanley Dean Witter, that "Japan could be the next great trade," apparently helped push the Nikkei average to a 7.1% rally earlier this week, before it closed lower yesterday on investor profit taking.

Either Mr. Biggs knows something we don't, or a lot of people are grasping for straws. Sure, the Nikkei is down 70% from its peak in 1989 and more tie-ups among Japan's wobbly banks might help stabilize the financial industry. But even though we hope...